FOREVER. ALL RIGHT, NOW TO A LIVE LOOK AT SACRAMENTO. THE CITY’S TOURISM INDUSTRY IS REBOUNDING. AND NOW CITY LEADERS ARE DEBATING HOW TO SPEND THE TAX DOLLARS THOSE VISITORS ARE GENERATING. THE CITY’S HOTEL TAX IS EXPECTED TO BRING IN NEARLY $43 MILLION THIS YEAR. THAT’S THE 12% TAX PAID BY PEOPLE WHO STAY IN HOTELS AND SHORT-TERM RENTALS. MOST OF THAT MONEY CAN ONLY BE USED FOR TOURISM RELATED PROJECTS AND ECONOMIC DEVELOPMENT. RIGHT NOW, THE MONEY IS MOSTLY SPENT THROUGH INDIVIDUAL FUNDING REQUESTS AND EXISTING OBLIGATIONS. BUT TOMORROW, THE CITY COUNCIL WILL TALK ABOUT A NEW PLAN THAT WOULD CREATE A STANDARDIZED PROCESS FOR PRIORITIZING FUTURE PROJECTS. BALANCING THE SHORT-TERM TOURISM DRIVERS LIKE THE FESTIVALS, CONVENTIONS, AND EVENTS WITH LONG TERM INVESTMENTS, INCLUDING PLAC
Sacramento city leaders consider new plan for hotel tax spending
The Sacramento City Council will discuss a proposal to standardize how hotel tax revenue is allocated, focusing on both short-term tourism drivers and long-term investments.
Updated: 11:20 PM PDT May 25, 2026
Sacramento city leaders are debating a new plan to standardize how hotel tax revenue is spent, as the city’s tourism industry continues to rebound. The city’s hotel tax, a 12% fee paid by people staying in hotels and short-term rentals, is expected to generate nearly $43 million this year. Most of the funds from the hotel tax are restricted to tourism-related projects and economic development. Currently, the money is primarily allocated through individual funding requests and existing obligations. On Tuesday, the city council will discuss a proposal to create a standardized process for prioritizing future projects. The plan would aim to balance short-term tourism drivers, such as festivals, conventions, and events, with long-term investments, including areas like Old Sacramento. If approved, the city manager would begin developing a new framework for allocating the funds.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SACRAMENTO, Calif. —
Sacramento city leaders are debating a new plan to standardize how hotel tax revenue is spent, as the city’s tourism industry continues to rebound.
The city’s hotel tax, a 12% fee paid by people staying in hotels and short-term rentals, is expected to generate nearly $43 million this year.
Most of the funds from the hotel tax are restricted to tourism-related projects and economic development.
Currently, the money is primarily allocated through individual funding requests and existing obligations. On Tuesday, the city council will discuss a proposal to create a standardized process for prioritizing future projects.
The plan would aim to balance short-term tourism drivers, such as festivals, conventions, and events, with long-term investments, including areas like Old Sacramento.
If approved, the city manager would begin developing a new framework for allocating the funds.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel